Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Famed Assetplus CEO in hot seat for alleged borrowed-name investment
Assetplus Investment Management Chairman and CIO Kang Bang-cheon / Newsis
By Anna J. Park
By Anna J. Park
Hailed as one of Korea's investment gurus, Assetplus Investment Management Chairman and Chief Investment Officer (CIO) Kang Bang-cheon has been a frequently sought-after guest at various investment lectures and media interviews. He's well-known for his legendary investment story of increasing his principal investment of 100 million won ($76,510) to 15.6 billion won in less than two years during the 1998 Asian Financial Crisis.
The famed value investor suddenly announced last Friday that he'd leave his chief post at the company that he founded in 1999, saying that it is about time for him to resign.
“I made the decision, as it feels like the time is ripe. I'd like to spend the rest of my time in my passion where I can contribute to society and the capital market, such as in discovering talented investors, educating and nurturing capable fund managers,” he expressed his wish for resignation after 23 years at the post in his recent letter to the firm's investors.
Kang will be stepping down from his post at the firm's board of director meeting and general shareholders' meeting in August, according to a firm official.
Yet, his departure from the leading post coincides with breaking media reports over the weekend that the financial authority is currently preparing sanctions against Kang over allegations of borrowed-name investments.
According to the financial industry, the Financial Supervisory Service (FSS) conducted a regular inspection into Assetplus Investment in November last year through which the FSS detected suspicious investment activity and launched an investigation into it. The agency is currently examining the matter before referring it to the Sanctions Deliberation Committee.
“It's true that the FSS conducted the regular inspection into the firm late last year, and it is in the process of discussing sanctions procedures. Yet, nothing has been decided for now, and it will be determined after completing internal examinations on the matter,” an official from the FSS told The Korea Times, Sunday.
Kang is allegedly involved in borrowed-name investment or self-trading, as he lent his personal money to an office sharing business, where he himself is the largest shareholder and his daughter the second largest. Furthermore, he is suspected of managing the business corporation's assets using a corporate name. The act could be regarded as a violation of the Securities Exchange Act, under which employees of brokerage firms or asset management companies are subject to various forms of limitations on their investment activities.
Chairman Kang has flatly denied the allegations.
“I am confident that the act never constituted self-trading,” he said during an interview with a local media outlet. “I think the FSS is taking an excessive approach,” explaining that the profit and loss from transactions does not belong to him at all, but only to the corporate entity.